Answer Happy

Your audit firm is appointed by Success University as the
external auditor for the year ended
31 December 2020. Success University is a well-established
private University in Malaysia and its history can be traced back
to more than five decades where it started off from a small college
in Ipoh and it has been granted for the status of a University in
2010. The University was previously audited by one of the
well-known audit firms in Malaysia. However, there were some
disputes over differences in accounting treatments with the finance
director of Success University and hence the University received a
qualified audit report in 2019. The board of directors were upset
over this matter and with the consent from the shareholders,
University decided to change the auditor. As an audit senior, the
audit manager has assigned you as the person in charge of this
audit engagement. Before the commence of this audit assignment, you
will take the necessary steps to do the planning for this
audit.
Required:
(i) Explain two (2) reasons to have a proper audit planning.
(ii) Identify four (4) sources of information which allows the
auditor to gain a good understanding of the profile and background
of Success University.
(iii) Identify two (2) risk factors of Success University and
describe one (1) audit procedure used to evaluate each of the risk
factor identified.
(iv) Explain what are the ethical and legal considerations
required to be considered before.
accepting Success University as a new audit client.
(v) What is the purpose of touring the campus and office?
Justify if such an audit procedure is needed for Success
University.